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This Monday the parent company of brands such as Sharpie and Yankee Candle, Newell Brands announced in a statement the cut of 13% of jobs, as part of a restructuring plan called Project Phoenix, which is scheduled to begin in the first quarter of 2023.
At the end of 2021, the company had a total payroll of 32,000 which included the 14,000 employees in the United States. However, Newell Brands decided with this new strategy, “to simplify its organizational structure”.
The Phoenix Project also seeks to centralize the supply chains and rationalize its goods, therefore the manufacture, transportation and service of the product will be covered, with with the objective of reducing the general expenses of the company.
According to the company’s statement, it is also expected that with this cut in jobs it will be possible to generate close to $250 million a year. “Including personnel savings, real estate savings and other purchased cost reductions,” Newell Brands said.
Managing Director Ravi Saligram said significant savings are expected to be unlocked “which should help to partially offset the impact of macroeconomic pressures on the business, while also making us a more agile organization,” he said.
In a filing by the Securities and Exchange Commission (SEC), the company anticipates that the Phoenix plan could reach the $130 million in total charges that are “related to cash severance payments and other termination benefits,” he said.
With this, Newell Brands joins several of the companies that between 2022 and the beginning of 2023 have decided to reduce their workload. Solid companies like Amazon, Microsoft, Google or Spotify have announced massive layoffs, in the expectation of a recession.
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